Those who don't know what to think about the current trade war between the U. S. and Canada, and are open to considering the facts, need to review some of these statistics:
Just so you know, we exported $354.4 Billion Dollars of goods to Canada in 2023, while importing $416.4 Billion Dollars in the same period. Resulting in a trade deficit to the U.S. of $63.3 Billion Dollars.
And in 2024, we exported $349.4 Billion Dollars to Canada, while importing $412.7 Billion Dollars. Resulting in a trade deficit to the U.S. of $63.3 Billion Dollars.
So we've supported Canada to the tune of more than $120 Billion Dollars over the past 2 years. We might as well have given it to them, no repayment required.
20% of Canada's Gross Domestic Product depends upon exports to the U.S. Only 1.4% of the U.S. Gross Domestic Product depends upon exports to Canada. In other words, they're a flyspeck on our financial system.
Canada's Premier Mark Carney's recent cozying up to China's Dictator Xi is a result of his known hatred of Trump. The trade from China to Canada is up 14.5% over the past quarter. Canada's past 20 years' financial growth has been 2.1%. An average of 0.02% per year. Only.
Since 2018, Canada has imposed tariffs upon American cheese, eggs, milk, and dairy products of from 277% to 343%. Even to cross-border suppliers in Washington, Idaho, Montana, Minnesota, Michigan, and New York. Who could simply walk across the street and sell them. The U.S. depends upon exportation of 29% of its dairy products, preventing a domestic oversupply. Their tariffs were done to protect Canada's own dairy product suppliers in violation of USMCA requirements. We know it. They know it. But we've done nothing about it. Until now.
There are 41,417,000 people in Canada. It's estimated that the imposition of $22 Billion in tariffs on the U.S. by them will cost the average Canadian family $1,600 a year. It's estimated to cost the average U.S. family no more than $1,200 a year, mainly because steel and aluminum imports (25% tariff) make up such a large part of automobiles. Those not buying autos should see little or no change in their financial status.
The recent refusal by Canadians to travel to the U.S., most particularly to Las Vegas (down 8.9%) and Florida (down 10.9%), has resulted in a reduction in an overall 22% downturn in visits over the past two years. It's resulted in $4.5 Billion in reduced spending during this period. U.S. travel to Canada has declined by only 4.5% during this same period. Mainly because, unless you're there to fish or hunt, there's little to see in Canada. Sorry, it's the truth.
The recent announcement of the oil trade agreement between the U.S. and Venezuela will significantly reduce Canada's exports to the U.S. over the coming years. Canada's heavy crude, which our refineries are built to handle, will no longer be needed because of this agreement, as Venezuela's heavy crude will supplant its importation. This could reduce Canada's GDP by as much as 8%. Quite possibly causing a Canadian economic depression.
Renaming Lake Ontario to Lake America is another poke in the eye by Trump to Canada's Premier Mark Carney. Who's been very public in his hatred of Trump. I personally think it's funny. It's done to piss off the Canadians, who are pretty easy to piss off, it seems. A trade war between the U.S. and Canada is very much like them playing checkers while Trump plays chess. This fly will be swatted. Canada will either relent, or be forced to suffer an economic downturn effecting every single Canadian.
I suspect they will do so, and soon. Otherwise, they just might be forced to become our 51'st State. Sort of like Illinois. Or Minnessota. They've been acting like it for years, even to allowing (forcing!) us to pay for their defense. Like a son who graduates from a college we paid for, then moves into the basement. While bitching about taking out the trash. With apologies to Yoda, up with Canada I'm now completely fed.
How about you?
